Double Bottom Breakout, Upward Channel Support

The BTC/USD was closed at $35631.0 after placing a high of $35966.0 and a low of $33725.0. Bitcoin continued its decline for the 6th consecutive session and reached below the $34000 level on Sunday amid various negative developments around the market. A professor of economics from Cornell University and former head of the IMF’s China division, Eswar Prasad, entails three significant flaws in bitcoin. According to Prasad, these flaws drive people in search of better alternatives. The first flaw he mentioned was the high energy consumption in bitcoin mining which is harmful to the environment. He said that Ethereum was working on a project that will enable it to use less energy.

The second flaw noted by Prasad was that bitcoin was not so anonymous, and other cryptocurrencies like Monero and zcash offered more anonymity than bitcoin. Finally, the third flaw he explained was that bitcoin could not work well as a currency as its transactions were slow and cumbersome for payment use. Finally, he added that bitcoin had become a speculative asset due to its highly volatile nature. These comments from Prasad added pressure on BTC/USD.

In addition, the NCB announced that it had arrested a suspect who allegedly exchanged bitcoin for LSD and was later identified as Crypto King. Furthermore, a 63-year old retired British teacher, Teresa Jackson, has said that she has lost her life savings worth 120 K pounds to the bitcoin scam in a fake Bitcoin investment scheme. She said that the lost funds were the collective amount of her life savings and pension funds. She explained that the scam appeared in an ad on Instagram and said that a stranger contacted her as a financial investor soon after she found the ad on Instagram.

The crypto scammer convinced her to stake 120,000 pounds, and she transferred the cash directly to him after feeling confident by the knowledge and trustworthy nature of the scammer. After transferring the amount, she tried to contact the person but got no answer and lost all of her life savings. This scam also added to the negative side of bitcoin that dragged BTC/USD further on the downside. On the flip side, Goldman Sachs has debuted a Bitcoin futures trading product in collaboration with crypto investment giant Galaxy Digital to offer to its clients.

One of the wealthiest Russians, Oleg Deripaska, blamed the Bank of Russia for its strict regulations imposed on digital assets. He said that the central bank prohibits the citizens from investing in cryptocurrencies like Bitcoin and asked the country to add the primary cryptocurrency as a payment method. He also gave an example with the Latin country of El Salvador that has already laid the foundations for making bitcoin legal tender.

BTC/USD Intraday Technical Levels

Support Resistance

34248.6 36489.6

32866.3 37348.3

32007.6 38730.6

Pivot Point: 35107.3

BTC/USD - Technical Outlook

On Monday, the BTC/USD pair plunged dramatically from 35,246 level to trade at 33,122 level. On the 4-hour timeframe, bitcoin has disrupted the support level of 35,246, which is now working as a resistance level. Furthermore, Bitcoin is supported by an upward channel on the 4-hour timeframe. The pair is gaining support at the triple bottom support level of 31,170 level, whereas the violation of 31,170 level can expose the pair towards the next support level of 29,562 level. The leading technical tool MACD is supporting a selling bias in Bitcoin. Likewise, the 50 periods EMA is also supporting a selling trend. Bearish bias continues to dominate the market. All the best!

Gold Completes 61.8% Fibonacci Retracement!

Gold prices were closed at $1777.05 after placing a high of $1826.20 and a low of $1768.00. Precious metal extended its losses for the 5th consecutive session on Thursday and reached its lowest level since April 30. Gold slipped by more than 2% on the day and reached below the $1800 level on Thursday on the back of a higher jump in the U.S. dollar after the U.S. Federal Reserve held a more hawkish tone on monetary policy.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies, rose above 92 levels after surging for three consecutive sessions. The Fed's expectations will raise interest rates in 2023 to 0.6% from the current level of 0.25%, supported by the rising prices of the U.S. dollar. A majority of Fed officials predicted at least two hikes in interest rates in 2023. However, Fed officials kept the policy support for this month to encourage recovery in the jobs sector. The announcement from Fed pushed the U.S. dollar to an over 2-month high level and weighed heavily on the yellow metal. The U.S. Treasury yields, however, remained under pressure on Thursday but failed to reverse gold prices.

On Wednesday, the Federal Reserve also signaled that it was monitoring data to know when to start tapering its monthly asset purchases of $120 billion. Since last year when the pandemic began, the U.S. central bank has been buying at least $40 billion in mortgage bonds and $80 billion in Treasury bonds to support the credit markets and the economy. On the data front, at 17:30 GMT, the Philly Fed Manufacturing Index rose to 30.7 against the expected 30.3 and supported the U.S. dollar that added in the loss of precious metal. The Unemployment claims from last week soared to 412K against the projected 360K and weighed on the U.S. dollar that limited further decline in the yellow metal. At 19:00 GMT, the CB Leading Index in June remained flat with a projection of 1.3%.

Meanwhile, the tensions between the U.S. and China are likely to worsen under the Biden administration as the relationship was going down a path of great confrontation. Some analysts believe that before elections last year, it was expected that the Biden administration would prove fruitful in terms of resolving the conflict between the U.S. and China. However, the U.S. recently has passed an expensive bill on investing a quarter of a trillion dollars in boosting domestic manufacturing to compete with China. Furthermore, President Joe Biden has also signed an executive order to expand a Trump-era ban on U.S. investment in Chinese companies that have any connection with the Chinese military. These negative developments surrounding U.S. & China kept the losses in gold prices limited on Thursday.

Gold Intraday Technical Level

Support Resistance

1754.64 1812.84

1732.22n1848.62

1696.44 1871.04

Pivot Point: 1790.42

**

Gold - XAU/USD - Technical Outlook**

The precious metal gold is trading at a 1,784 level on Friday, having bounced off over 1,769 support level. The precious metal has completed 61.8% Fibonacci retracement at 1,769 level, and closing the daily candle suggests a bullish correction. On the daily timeframe, the Fibonacci indicator is suggesting resistance levels of 1,795 and 1,822 that marks 23.6% and 38.2% Fibonacci retracement levels. The MACD is showing a bearish crossover, indicating the overall trend is still looking bearish. The 50 periods EMA is holding at 1,822 level, indicating a bearish trend. Since the current market price of gold is far away from EMA, the odds of bullish correction remain high. Gold's support level stays at 1,769 and 1,750 levels. All the best!

Symmertical Triangle Pattern

The ETH/USD was closed at $2610.65 after placing a high of $2610.65 and a low of $2461.43. After declining for two consecutive sessions, ETH/USD rose and posted slight gains on Wednesday. Most of the bullish trend triggered amid the prevailing improved market sentiment driven primarily by upbeat bitcoin prices. Lately, the Ethereum network's transaction fees have fallen to their lowest level since the beginning of the year as the crypto market cooled down following the recent market crash in May. The entire crypto-market came under pressure during mid-May after Tesla announced that it was no longer accepting bitcoin as payment. The downfall was further escalated by the news that China was going against all cryptocurrency activities, including mining and trading. Since then, the market has found it challenging to reclaim its previous levels.

The down-trending market has some advantages, including the decline in demand for digital assets, resulting in a drop in transaction fees. According to data from BitInfoCharts, the Ethereum network's average transaction fee dropped to a low of $3.70 over the weekend, which was the lowest level since the end of December 2020. However, the transaction fees have climbed to $5.45 amid the increased activity in the network.

Another reason behind the upward trend in the Ethereum prices was the news from EL Salvador that BTC will be officially recognized as legal tender and will allow people to use it to spend for goods and services in the Central American country. The uptick caused by this news raised the overall market cap for all cryptocurrencies combined back above $1.5 trillion and has halted the declining prices of all markets for the moment that began in mid-April. Besides, the U.S. dollar that negatively correlated with the ETH/USD remained flat throughout the day but ended the day with minor gains. The U.S. Dollar Index (DXY) dropped 89.84 on the day and helped Ethereum post higher gains on Wednesday.

ETH/USD Intraday Technical Levels

Support Resistance

2346.89 2418.95

2321.50 2465.62

2274.83 2491.01

Pivot Point: 2393.56

ETH/USD - Technical Outlook

The ETH/USD consolidates at a 2,329 mark, falling below the support level of 2,454 level. On the 4-hour chart, the ETH/USD pair is now facing resistance at 2,450 level that's being extended by a previously violated support level which currently is working as a resistance. At the same time, the upward violation of the 2,450 level can lead the ETH/USD pair towards the 2,633 level. The 50 periods EMA is extending resistance, suggesting bearish bias and its extending resistance at 2,450 level. On the lower side, the ETH/USD may find support at 2,272 and 2,162 level. All the best!

Upward Channel Support

The BTC/USD was closed at $38061.0 after placing a high of $39324.0 and a low of $37733.7. Bitcoin extended its losses and continued its bearish streak for three sessions amid various negative developments surrounding cryptocurrencies. On Wednesday, the Finance Minister of El Salvador said that the country had sought technical assistance from the World Bank. Consequently, the World Bank said that it could not assist El Salvador’s bitcoin implementation due to its environmental issues and transparency drawbacks. The World Bank said they were committed to helping El Salvador in numerous ways, including currency transparency and regulatory processes. However, as the government has approached them for assistance on bitcoin, the World Bank has denied its support given the shortcomings related to environmental impact and transparency.

The refusal to assist El Salvador in this matter by World Bank weighed on the cryptocurrency Bitcoin and negatively turned the mood around the crypto market. Furthermore, the crypto market came under fresh pressure after a survey from Bank of America suggested that fund managers still do not trust bitcoin. They rather see biotin as a major bubble despite its massive price bust over the past months.

According to the survey, about 81% of the hedge fund managers that took part in the survey believed that bitcoin was a bubble. The survey included 660 participants who all together manage more than $660 billion in total assets for their clients. BTC/USD prices declined on Thursday after the results from the survey revealed many hedge fund managers still do not trust bitcoin.

On the other hand, the U.S. Dollar was high on board with a strong comeback after the release of the Federal Reserve monetary policy report. The report suggested that Fed officials predicted interest rate hikes in 2023, along with talks of tapering in asset purchases. The U.S. Dollar Index rose above 92 handles and weighed heavily on BTC/USD as both share a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

37421.8 39012.1

36782.6 39963.2

35831.5 40602.5

Pivot Point: 38372.9

BTC/USD - Technical Outlook

On Friday, the BTC/USD showing a slight bearish correction falling from 40,500 level to 37,329 level. However, the closing of the recent Doji candle over 38,037 level is demonstrating the bullish power. It looks like the sellers are exhausted, and buyers are ready to take over. Earlier this week, the BTC/USD pair violated the symmetrical triangle pattern that's now ready to drive buying trends in BTC on a daily timeframe. The BTC/USD can go after 42,150 and 45,379 levels on the higher side, primarily because of the symmetrical triangle breakout. At the same time, the support levels stay at 39,120 and 37,880. The MACD has crossed over 0 (crossover point), demonstrating solid bullish bias among investors. The 50 periods EMA also supports an upward movement in the BTC/USD. All the best!

Hawkish FOMC Triggers Sell-off in Gold

Gold prices were closed at $1819.70 after placing a high of $1865.25 and a low of $1805.05. Gold extended its losses for the 4th consecutive session on Wednesday and reached its lowest level since 6th May on the back of a strong pullback in the U.S. dollar. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies jumped higher on Wednesday and reached its highest level since 5th May at $91.43. On the other hand, the U.S. Treasury Yield on a 10-year note also reached 1.59% after the Federal Reserve issued its policy decision.

Gold prices fell more than 1% on Wednesday after the U.S. Federal Reserve officials put forward expectations for the first post-pandemic interest rate hike into 2023. In a statement released after the monetary policy meeting, the officials pledged to keep the policy supportive for now and encouraged an ongoing recovery in the jobs sector. In the statement, 11 out of 18 Fed officials also predicted at least a two-quarter points increase in the interest rate for 2023.

However, the Federal Reserve held its benchmark short-term interest rate near zero and reiterated that it would continue its $120 billion bond purchases each month to fuel the economic recovery. After this announcement, the U.S. dollar and Treasury yields jumped higher on the day. They weighed heavily on the yellow metal as higher yields raise the opportunity cost of holding non-yielding bullion.

On the data front, at 17:30 GMT, the Building Permits from May dropped to 1.68M against the expected 1.73M and weighed on the U.S. dollar that limited the decline in the yellow metal. The Housing Starts also declined to 1.57M against the forecasted 1.64M and weighed on the U.S. dollar and further caped losses in gold prices. The Import Prices rose to 1.1% against the projected 0.8% and supported the U.S. dollar that added extra downward pressure on bullion.

After concluding the two-day meeting on Wednesday, the Federal Reserve signaled higher inflation expectations in 2021 along with an earlier timeframe for the interest rate hikes. The officials at the central bank hoped that there could be two interest rate hikes in 2023, while the FOMC kept its benchmark interest rate close to zero on Wednesday.

The Chairman of the U.S. central bank said that he was monitoring the economic data and has not decided to end the bond purchases. Powell said that Fed would provide advance notice regarding a decision about tapering; however, the timing of this decision was dependent on the progress of economic recovery. About inflation, the Federal Reserve Chairman said that inflation could run hotter than the central bank's expectations as the reopening continued, hiring difficulties, and a large shift in demand and supply constraints.

The comments from Powell also added strength to the already rising U.S. dollar, which happened to have a negative impression on the bullion. They dragged it to its lowest since the early May level and extended its bearish streak for the 4th consecutive session on Wednesday.

Gold Intraday Technical Level

Support Resistance

1794.75 1854.95

1769.80 1890.20

1734.55 1915.15

Pivot Point: 1830.00

**

Gold - XAU/USD - Technical Outlook**

Gold is trading with a strong bearish sentiment at a 1,814 level, disrupting the double bottom support level of 1,843. On the 4-hour timeframe, the precious metal gold has closed a strong bearish engulfing candle that's suggesting odds of a bearish trend continuation. At the moment, gold's immediate support stays at a 1,807 level that's being extended by a double bottom pattern on the four hourly timeframes. Below this, gold's bearish movement remain exposed until 1,777 level. All the best!

Euro's Deep Dive – Hawkish FOMC In-Play

The EUR/USD was closed at $1.1994 after placing a high of $1.2135 and a low of $1.1993. The EUR/USD currency pair fell sharply on Wednesday and reached its lowest level since May 5 amid the strong comeback in the U.S. dollar after the FOMC statement. The U.S. dollar soared on Wednesday on the back of a favorable Federal Reserve decision about its monetary policy. Federal Reserve raised inflation expectations for the year 2021 while FOMC presented a projection that Fed might hike interest rates in 2023 for two times.

The decision of the Fed to keep interest rates and the QE program unchanged came in as expected; however, the statement released by FOMC gave a little different perspective compared to the previous one. The statement did not include any mentioning of tapering the asset purchases; however, it did include an economic projection that predicted two interest rates hike in 2023. The greenback rose sharply against the basket of six major currencies and reached a 91.43 level, further supported by the rising U.S. Treasury yields. The yields on the benchmark 10-year note jumped to 1.59% before pulling back to 1.56% and helped the U.S. dollar that kept the currency pair EUR/USD under pressure for the day.

On the data front, there was no macroeconomic data to be released from the European side, however from the U.S. side, at 17:30 GMT, the Building Permits from May declined to 1.68M against the estimated 1.73M and weighed on the U.S. dollar that limited the losses in EUR/USD. The Housing Starts also dropped to 1.57M against the anticipated 1.64M and weighed on the U.S. dollar that further caped decline in EUR/USD. The Import Prices surged to 1.1% against the predicted 0.8% and supported the U.S. dollar that added extra downward pressure on EUR/USD.

Furthermore, the losses in EUR/USD pair extended after the speech of Chairman of the Federal Reserve, Jerome Powell. According to him, the revision in the projection for interest rate hikes came in after inflation accelerated faster and could be more persistent than the central bank's expectations.

On the other hand, on Wednesday, the European Union decided to add the United States to its safe travel list. It means it will be easier for an American citizen to take a vacation in any EU member state. The coronavirus pandemic had prompted a ban on non-essential travel from the U.S. and other places to avoid the contagion. However, with the increasing pace of vaccination, the 27 EU member states allowed non-essential travelers from eight new countries on Wednesday.

EURUSD Intraday Technical Levels

Support Resistance

1.1947 1.2089

1.1899 1.2183

1.1805 1.2230

Pivot Point: 1.2041

EUR/USD - Technical Outlook

The EUR/USD's bearish bias has dominated the market since the release of the Hawkish FOMC statement from the U.S. FED. The EUR/USD pair is now trading at the 1.1955 level, disrupting the support level of 1.2096 and 1.2060 levels. The EUR/USD has also violated the double bottom support level of 1.1987 level on the lower side. For now, the EUR/USD's next support prevails at the 1.1940 level, and a bearish breakout of 1.1940 exposes the pair's movement further lower until the 1.1875 level. The MACD shows strong selling bias among investors, while the 50 periods EMA suggest an oversold scenario for the EUR/USD. The EUR/USD's support level of 1.1875 will be in highlights to capture bullish correction. All the best!

Symmetrical Triangle Pattern Retest

The BTC/USD was closed at $38332.0 after placing a high of $40394.0 and a low of $38332.0. BTC/USD extended its losses on Wednesday and dropped for the second consecutive session amid various negative developments in the market along with the strong comeback in the U.S. dollar. A professor of applied economics at Johns Hopkins University, Steve Hanke, slammed the decision of El Salvador to adopt bitcoin as a legal tender and questioned how bitcoin could function in day-to-day transactions. Hanke warned that the recent adoption of bitcoin as legal tender by El Salvador could completely collapse the economy.

The 78-year-old professor has served as a senior economist under President Ronald Reagan's administration from 1981 to 1982. Hanke has previously said that Bitcoin was a speculative asset with a fundamental value of zero. He has also tweeted that cryptocurrencies are the future of money, but bitcoin is not. Hanke said that BTC holders from regions like Russia and China could now target El Salvador to cash out their holdings that would essentially drain the country of its U.S. dollars. He added that bitcoin has the potential to completely collapse the economy as all the dollars in the country could be vacuumed up, and there will be no money in the country as they do not have a domestic currency. He also questioned the use of bitcoin in day-to-day transactions as the country's citizens rely more on cash transactions. He explained that if one wants to pay a taxi fare in El Salvador with a bitcoin, it would not be possible as about 70% of the people in that country do not even have a bank account. After his comments, bitcoin faced heavy pressure and experienced a selloff for the day.

Furthermore, the central bank of Indonesia revealed its plans to prohibit the use of cryptos for payments in the country. Perry Warjiyo, the apex bank governor, announced that digital assets like bitcoin must not be allowed to other financial services tools. Warijiyo said that cryptocurrencies were not recognized as a legal means of payment by the central bank, so financial institutions must avoid any dealings with the asset class. The central bank has also revealed that it will mobilize teams to enforce the restriction and ensure that institutions comply with the ban. This news also added further pressure on the prices of Bitcoin.

Meanwhile, theU.S. dollar gathered strength across the board on Wednesday after the Federal Reserve announced its monetary policy decision. The U.S. Fed kept its interest rates and QE program unchanged but showed expectations for higher inflation this year. It also projected two interest rates hike in 2023 and supported the U.S. dollar on Wednesday. The DXY reached its highest level since May 5 at 91.43 level and added extra pressure on BTC/USD as both share a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

37644.6 39706.6

36957.3 41081.3

35582.6 41768.6

Pivot Point: 39019.3

BTC/USD - Technical Outlook

On Thursday, Bitcoin has shown a slight bearish correction falling from 40,500 level to 38,037 level. However, the closing of the recent Doji candle over 38,037 level is demonstrating the bullish power. It looks like the sellers are exhausted, and buyers are ready to take over. Earlier this week, the BTC/USD pair violated the symmetrical triangle pattern that's now ready to drive buying trends in BTC on a daily timeframe. On the higher side, the BTC/USD can go after 42,150 and 45,379 levels, primarily because of the symmetrical triangle breakout. At the same time, the support levels stay at 39,120 and 37,880. The MACD has crossed over 0 (crossover point), demonstrating solid bullish bias among investors. The 50 periods EMA also supports an upward movement in the BTC/USD. All the best!

FOMC & FED Rate Decision in Highlights!

Gold prices were closed at $1859.45 after placing a high of $1870.85 and a low of $1853.10. Gold dropped for 3rd consecutive session on Tuesday and remained consolidated in a tight range ahead of the U.S. Federal Reserve meeting expected to indicate the tapering of asset purchases. However, the demand for the Federal Reserve's repo facility was surging, which suggested that liquid conditions in the market were more than abundant. This portrays that the market was probably prepared to survive a gradual scaling back of asset purchases.

The U.S. dollar surged and reached near the 1-month highest level as the DXY strengthened 0.1%, made the dollar strong against its rival currencies that made gold more expensive for other currency holders and dragged its prices downward. Despite substantial growth in the economy and a patchy recovery in the job market, many economists anticipate a taper announcement in the upcoming two-day policy meeting by the Federal Reserve, whose outcome will be announced today on Wednesday.

Market participants were highly anticipating that the Fed would stick to its previous script of the minutes; however, the recent improvements in the labor market along with the higher numbers of inflation raised concerns that Fed could be less dovish this week.

On the data front, at 17:30 GMT, the Core Retail Sales in May dropped to -0.7% against the expected 0.4% and weighed on the U.S. dollar that limited the downfall in gold prices. The PPI in May surged to 0.8% against the projected 0.5% and supported the U.S. dollar that added further loss in the yellow metal prices. In May, the Retail Sales declined to -1.3% against the forecasted -0.6% and weighed on the U.S. dollar that further caped loss in gold prices. The Core PPI also surged to 0.7% against the expected 0.5% and supported the U.S. dollar that dragged gold further downside.

The Empire State Manufacturing Index dropped to 17.4 against the expected 22.2 and weighed on the U.S. dollar. At 18:15 GMT, the Industrial Production in May rose to 0.8% against the anticipated 0.6% and supported greenback that added weight on gold. The Capacity Utilization Rate remained flat with the expected 75.2%. At 19:00 GMT, the Business Inventories dropped to -0.2% against the estimated -0.1% and supported theU.S. dollar that added further loss in gold prices. The NAHBB Housing Market dropped to 81 against the forecasted 83 and weighed on the greenback. The mixed macro-economic data release from the U.S. on Tuesday kept the U.S. dollar under highlights and dragged gold on the downside.

**

Gold Intraday Technical Level**

Support Resistance

1851.41 1869.16

1843.38 1878.88

1833.66 1886.91

Pivot Point: 1861.13

Gold - XAU/USD - Technical Outlook

On Wednesday, the precious metal gold price continues to trade with a bearish bias at the 1,859 level as traders failed to break above the 38.2% Fibonacci retracement lead resistance area of 1,867. At the moment, gold is consolidating at 1,860 levels, gaining immediate support at 1,851 and 1,843 levels. At the same time, the next resistance level stays at 1,866 and 1,873 levels. The 1,866 level is extended by a 38.2% Fibonacci retracement level, for your information, while a 50% Fibonacci correction level extends 1,873. On Wednesday, the U.S. FOMC and FED monitory policy decisions will be the main highlight of the day. As discussed above, the FED is likely to sound less dovish now amid improved economic events; therefore, the gold's price can face bearish pressure. All the best!

Big Day -Eyes on FED Monitory Policy Meeting

The EUR/USD was closed at $1.2124 after placing a high of $1.2149 and a low of $1.2100. EUR/USD posted minor gains on Tuesday and remained green for the second consecutive session. During the early trading session, the EUR/USD remained higher, but after the release of U.S. macroeconomic data, the currency pair lost some of its gains and left them unchanged.

The U.S. Dollar Index that measures the greenback value against its rival currencies rose to its one-month highest level at 90.68 and gave strength to the greenback that ultimately caped further upward momentum in the EUR/USD currency pair. On the data front, at 11:00 GMT, the German Final CPI for May remained flat with the expectations of 0.5%. At 11:45 GMT, the French Final CPI for May also came in line with the expectations of 0.3%. At 14:00 GMT, the Trade Balance dropped to 9.4B against the projected 14.9B and weighed on Euro, which capped further EUR/USD pair.

From the U.S. side, at 17:30 GMT, the Core Retail Sales in May declined to -0.7% against the estimated 0.4% and weighed on the U.S. dollar that pushed EUR/USD higher. The PPI in May rose to 0.8% against the predicted 0.5% and supported the U.S. dollar that limited the gains in EUR/USD. In May, the Retail Sales dropped to -1.3% against the anticipated -0.6% and weighed on the U.S. dollar that pushed EUR/USD higher. The Core PPI also rose to 0.7% against the estimated 0.5% and supported the U.S. dollar that limited the rising prices of EUR/USD.

The Empire State Manufacturing Index decreased to 17.4 against the estimated 22.2 and weighed on the U.S. dollar, adding further gains in EUR/USD. At 18:15 GMT, the Industrial Production in May surged to 0.8% against the projected 0.6% and supported the greenback. The Capacity Utilization Rate remained flat with the forecasts of 75.2%. At 19:00 GMT, the Business Inventories declined to -0.2% against the expected-0.1% and supported the U.S. dollar. The NAHBB Housing Market was reduced to 81 against the anticipated 83 and weighed on greenback that added gains in EUR/USD.

The central bank of the U.S. will announce its latest decision on monetary policy on Wednesday, where the Fed is expected to maintain its accommodative policy throughout the year. However, as the labor market has shown improvements and the economic growth has started moving towards recovery, there are chances that the rising price pressures would force Fed to start thinking about tapering the asset purchases. These hopes also kept market participants cautious from placing any strong bid ahead of the decision. Hence, the U.S. dollar remained primarily flat and kept the currency pair EUR/USD consolidated.

**

EURUSD Intraday Technical Levels**

Support Resistance

1.2099 1.2148

1.2075 1.2173

1.2050 1.2196

Pivot Point: 1.2124

EUR/USD - Technical Outlook

The technical side of the EUR/USD pair hasn't changed a lot as the pair continues to trade at the 1.2128 level, facing immediate resistance at the 50% Fibonacci correction level of 1.2145. Bullish crossover of 1.2142 level exposes the EUR/USD price towards 61.8% Fibonacci retracement level of 1.2154. On the downside, the pair's support stays at 1.2131 and 1.2116 levels. The 50 periods EMA suggests an upward trend in the EUR/USD pair and supports it at the 1.2124 level. The MACD has crossed over 0 levels, supporting a bullish trend in the EUR/USD pair. The pair's support holds at 1.2131 and 1.2116 while the resistance stays at 1.2142 and 1.2154 levels. Although the technical side isn't offering anything new, today's primary focus will remain on the U.S. monitory policy meeting. It has the potential to drive sharp price action in the U.S. dollar and related currency pairs. All the best!

Bitcoin Heading towards 38.2% Fibo Level

The BTC/USD was closed at $40139.0 after placing a high of $40708.8 and a low of $39726.0. After rising sharply for two consecutive sessions, BTC/USD reversed its course on Tuesday and placed minor losses for the day. The losses in bitcoin could be a price correction or profit-taking, but there were also some adverse developments in the market. The Dutch Bureau for Economic Analysis director, Pieter Hasekamp, called for a complete ban on bitcoin. He published an essay titled "The Netherlands must ban bitcoin" and argued that bitcoin does not support money's three functions. The Netherlands must ban the mining, holding, or trading of the leading cryptocurrency.

He explained that bitcoin has no intrinsic value and is only considered valuable because others might accept it. He added that bitcoin does not support the functions like a unit of account, a means of payment, or a store of value. Finally, he put forward the most popular drawback of bitcoin-related to security concerns, including the fact that it can be used in illegal activities. There were high risks of scams involved with the usage of bitcoin. Besides, the U.S. Securities and Exchange Commission issued its regulatory agenda for 2021 in front of the public. The agenda conspicuously missed any mentioning of cryptocurrencies, blockchain, or specific tokens like bitcoin or Ethereum in its list of regulatory priorities for the year.

The omission of cryptocurrencies from the possible policy punch list of SEC was surprising as the recent issues regarding cryptocurrencies were not something that could be ignored, such as the mining energy consumption, increasing ransomware attacks paid in bitcoin, the potential threat of private cryptocurrencies to sovereign currencies declared by IMF and politicians and much more.

None of these reasons were enough for SEC to include regulation of cryptocurrencies in its list of priorities. This fact shocked the investors and weighed over the prices of bitcoin on Tuesday. Meanwhile, the law enforcement agents in China have arrested approximately 1,100 individuals on charges of using crypto in money laundering. This move by China gave a clear reminder that China is actively working towards a society where crypto holds no existence.

Additionally, China has long been home to more than half the world's bitcoin miners. Still, now Beijing has decided to send them out as the government has called for a severe crackdown in bitcoin mining and trading activities. These negative developments added further losses in BTC/USD prices on Tuesday. However, on Wednesday, the BTC/USD is trading with a bullish bias; let's take a look at the technical side of the market.

BTC/USD Intraday Technical Levels

Support Resistance

39255.53 40985.23

38549.87 42009.27

36820.17 43738.97

Pivot Point: 40279.57

BTC/USD - Technical Outlook

Bitcoin's bullish bias dominates in the market as the BTC/USD is trading at the 40,180 level. The BTC/USD pair has violated the symmetrical triangle pattern that's driving buying trends in BTC on a daily timeframe. On the higher side, the BTC/USD has the potential to go after 42,150 and 45,379 levels, primarily because of the symmetrical triangle breakout. Whereas the support levels stay at 39,120 and 37,880. The MACD has crossed over 0 (crossover point), demonstrating solid bullish bias among investors. The 50 periods EMA also supports an upward movement in the BTC/USD. All the best!